Reverse Charge Mechanism (RCM) on renting of motor vehicles

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..... x Research Unit vide Circular No. 130/49/2019-GST dated 31 December, 2019 has issued a clarification regarding Reverse Charge Mechanism (RCM) on renting of motor vehicles, in order to ensure uniformity in the implementation of the provisions of law across the field formations, which is annexed herewith. In exercise of powers conferred by section 168 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017) for the purpose of uniformity in the implementation of the Act it is instructed to follow the clarification issued vide Circular No. 130/49/2019-GST dated 31 st December, 2019 by the Department of Revenue, Tax Research Unit. Encl.: Circular No. 130/49/2019-GST. [No.F.1-11(91)-TAX/GST/2 .....

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..... was inserted in the RCM notification with effect from 1.10.19: Sl. No. Category of Supply of Services Supplier of service Recipient of Service (1) (2) (3) (4) 15 Services provided by way of renting of a motor vehicle provided to a body corporate. Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business Any body corporate located in the taxable territory. 3. Post .....

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..... on the service by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient only if the supplier fulfils all the following conditions: (a) is other than a body-corporate; (b) does not issue an invoice charging GST @12% (6% CGST + 6% SGST) from the service recipient; and (c) supplies the service to a body corporate. 6. It may be noted that the present amendment of the notification is merely clarificatory in nature and therefore for the period 01.10.2019 to 30.12.2019 also, clarification given at para 5 above shall apply, as any other interpretation shall render the RCM notification for the said service unworkable for .....

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